What type of £10,000 loan could I get?
A £10,000 loan will be unsecured or secured, and which type might be right for you depends on a few factors:
An unsecured loan allows you to borrow £10,000 without needing to use a high-value asset that you own as collateral against the loan. It will usually be the quickest way to arrange a loan, and you don’t need to be a homeowner or own anything of value to take one out. However, you can generally expect to pay a higher interest rate than if you took out the alternative of a secured loan, and your credit score will be a more important consideration for the lender too.
With a secured loan, you use an asset such as your home as security for the loan. As lenders consider they are taking on less risk, secured loans tend to have lower interest rates and higher borrowing amounts than unsecured loans. A bad credit score is less likely to pose a problem if you want a secured £10,000 loan. However, you risk losing your property or other assets if you don’t make your repayments when they are due.
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